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South Korea

Country Briefing

2015

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Table of Contents Historical Context ......................................................................................................................................................... 3

History ...................................................................................................................................................................... 3

Government ............................................................................................................................................................. 4

Language ................................................................................................................................................................. 4

Religion .................................................................................................................................................................... 4

Market Demographics ............................................................................................................................................ 5

National Holidays for 2016 .................................................................................................................................... 5

Cultural Context ........................................................................................................................................................... 5

The Korean People .................................................................................................................................................. 5

Value System ........................................................................................................................................................... 6

Cognitive Style ......................................................................................................................................................... 6

Time ......................................................................................................................................................................... 7

Standard Greetings ................................................................................................................................................. 7

Dress ........................................................................................................................................................................ 8

Appointments .......................................................................................................................................................... 8

Gestures & Nonverbal Communication ................................................................................................................. 8

Negotiating .............................................................................................................................................................. 8

Visiting ...................................................................................................................................................................... 9

Eating ....................................................................................................................................................................... 9

Gift Giving ................................................................................................................................................................ 9

Faux Pas ................................................................................................................................................................ 10

Economic Context ...................................................................................................................................................... 10

KORUS ................................................................................................................................................................... 10

Total U.S. Trade with South Korea ....................................................................................................................... 10

2014 Major Exports and Imports ......................................................................................................................... 11

Market Analysis ..................................................................................................................................................... 11

Market Opportunities ............................................................................................................................................ 12

Market Challenges ................................................................................................................................................ 12

Major Centers of Commerce................................................................................................................................. 13

U.S. Embassy in South Korea ............................................................................................................................... 14

Upcoming Trade Shows/Events for 2016 ........................................................................................................... 14

Kentucky Context ....................................................................................................................................................... 15

South Korean-owned Companies with Facilities in Kentucky ............................................................................ 15

Total Kentucky Trade with South Korea .............................................................................................................. 15

South Korea Consulate for Kentucky ................................................................................................................... 16

Sources ...................................................................................................................................................................... 17 

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Historical Context History

The Korean peninsula was first unified in 660 A.D. under the Silla Kingdom. Throughout the next 1,300 years, Korea was subjected to foreign intervention and the status of a vassal state under the Mongols, Manchus and the Han Chinese. The Korean Chosun Dynasty governed over a period of relative stability from 1392 to Japan’s annexation of Korea in 1910.

In 1895, Japan’s victory in the Sino-Japanese War forced the end of Chinese hegemony over Korea and brought the region into Japan’s sphere of influence. Shortly afterwards, Japan coerced Korea’s Chosun government to sign the Eulsa treaty which established Korea as a protectorate of Japan and set the stage for Japan’s annexation of Korea in 1910. Under Japanese occupation, Japan enacted modernizing reforms that expanded agricultural and industrial production as well as improved infrastructure in Korea. However, these economic gains primarily benefited the war effort and Japanese consumers. Korean men were drafted into Japan’s military and hundreds of thousands of Korean women were forced into sexual slavery. Japanese-Korean relations have yet to recover from the terrible treatment Korea endured under Japanese colonization.

After World War II, the Soviet Union and the U.S. agreed upon a trusteeship plan for Korea where the peninsula would be divided by the 38th parallel. When negotiations for the reunification of Korea failed, the U.S. occupied the area south of the 38th parallel and established Syngman Rhee as the first president of the new Republic of Korea (ROK). Rhee quickly consolidated power and operated more like an authoritarian leader than the leader of a liberal democracy. Under Rhee, South Korea’s economy stagnated due to high inflation, corruption, and devastated infrastructure.

In 1950, the Democratic People’s Republic of Korea (DPRK) and its leader Kim Il-Sung invaded South Korea with the intention of reunifying Korea under communist rule. North Korean military forces had early success and advanced to the southeastern port city of Busan. The U.S. was able to secure the United Nations Security Council’s (UNSC) support for military intervention in Korea after the Soviet Union’s boycott of the UN provoked by the disagreement over the Republic of China’s (Taiwan) representation on the UNSC. A coalition of United Nations, United States and South Korean military forces were able to drive back the North Korean military all the way to their border with China along the Yalu River. The coalition’s progress threatened the People’s Republic of China, which then intervened on behalf of North Korea. Chinese military support drove UN forces back to the 38th parallel resulting in a stalemate. In 1953, an armistice was signed creating a demarcation line along the 38th parallel. The Korean War was detrimental to the entire Korean peninsula. 10% of the Korean population was killed and South Korea’s GDP declined by 15%.

A military coup led by the former Major-General Park Chung-hee seized control of the South Korean government in 1961. The autocratic President Park instituted the Yushin Constitution, which vastly expanded executive power. The Yushin Constitution removed term limits, and granted Park the power to appoint 1/3rd of South Korea’s National Assembly representatives, as well as the power to shelve civil liberties. South Korea’s economy flourished under Park’s leadership. The Park administration emphasized indicative planning, export-oriented industrialization, and a large investment in education and infrastructure. From the early 1960s to the 1980s the country’s GDP growth regularly exceeded 10%, distinguishing it as one of the four Asian Tigers. President Park was assassinated in 1979 by the head of South Korea’s National Intelligence Service.

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In the early 1980s, a democratization movement gained popularity amongst South Korean civil society. Popular dissent against authoritarian rule and the declaration of martial law after Park’s assassination resulted in the Gwangju Massacre where an estimated 2,000 civilians were killed by Korean troops. The pro-democracy movement failed to subside, and in 1987 a new constitution was adopted that dismantled the Yushin system and established direct presidential elections.

Government

The Republic of Korea has been a liberal democracy since 1987. The government is a presidential republic with a unicameral legislature called the National Assembly. The ROK has both a President (Chief of State) and a Prime Minister (Head of Government). The President has the power to appoint the Prime Minister with the National Assembly’s approval. The President serves one five year term and is directly elected by a simple majority of constituents. The current President is Park Geun-hye of the New Frontier Party who is the daughter of former authoritarian President Park Chung-hee. Park is South Korea’s first female President.

The most prominent political parties in the National Assembly are the New Frontier Party (42.8%) and the Democratic United Party (36.5%). The New Frontier Party has a conservative political leaning, and is a proponent of free market economics and fiscal responsibility. The Democratic United Party has a liberal political leaning that favors economic progressivism.

 

Language

South Korea’s official language is Korean. The Korean language is composed of a phonetic alphabet (Hangul) as well as Chinese characters (Hanja). Throughout the 20th century, the use of Hanja declined in the interest of nationalism and practicality. Hanja is still taught in the South Korean school system and the average high school graduate recognizes about 2,000 characters. Knowledge of Hanja is more common in certain professions, including law and literary studies. Hanja has become more popular over the last decade due to China’s economic ascension. English is the most popular foreign language in South Korea. Elementary, Middle and High School students are required to take English classes in school.

Religion

South Korea has no dominant organized religious affiliation. 46% of the population has no religious affiliation at all. The most popular religions in the country are Christianity (29%) and Buddhism (23%). Protestantism (18%) is more prevalent amongst Koreans than Catholicism (11%).

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Market Demographics

South Korea has a population of 50.2 million people. It is an ethnically homogenous society with the Korean ethnicity comprising of 98% of the population. South Korea’s largest minority is its small population of Chinese, which number around 20,000. Presently, there are 29,000 U.S. troops, stationed in South Korea, most of which have been consolidated to Camp Humphreys near the large city of Pyeongtaek.

South Korea is highly urbanized. 84% of South Korean consumers live in urban areas. Seoul is the country’s largest city and contains a population of 10.3 million. Other large cities are Busan (3.6 million), Incheon (2.6 million), and Daegu (2.5 million).

South Korea is facing a crisis derived from its rapidly aging population and low birth rate. Its working age population, between the ages of 15-64, is expected to peak at 37 million in 2016. South Korea’s fertility rate is 1.2 births per woman, but for population growth to occur the fertility rate needs to be greater than or equal to 2.1 births per woman.

National Holidays for 2016

New Years Day (January 1st)

Seollal (February 7th – 9th)

Independence Movement Day (March 1st)

Children's Day (May 5)

Buddha's Birthday (May 25)

Memorial Day (June 6)

Liberation Day (August 15)

Chuseok (September 26 – 28)

National Foundation Day (October 3)

Hangeul Day (October 9)

Christmas (December 25)

Cultural Context The Korean People

 

Age- Koreans are one year old immediately after birth. In accordance with Korean culture everyone becomes one year older on New Year’s Day. However, the South Korean government uses a chronological age system for official records and age requirements.  

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Name- The family name is provided first followed by two given names. Usually siblings share a common given name and can be differentiated by their second given name.   

Value System

If one wants to understand South Korea’s value system one should look towards Dynastic China. For many centuries Korea was a tributary state of China. Over time it adopted and absorbed bits and pieces of culture from their “Big Brother”. Confucianism diffused from Dynastic China to Korea. Much of the Korean value system is derived from Confucianism, such as its emphasis on filial piety, and on a centralized, hierarchical society.

South Korea is a high power distance country. It has vertical, hierarchical relationship system where a person’s actions are dictated by their perceived status within the societal hierarchy compared to those who they are interacting with. Today, a South Korean’s status is determined by their age and their occupation, with a higher degree of respect paid towards elders. South Koreans usually ask their acquaintance their age and occupation first. When participating in business interactions this process is replaced by exchanging business cards. Always address those older than you in honorific language. Oftentimes, it is only appropriate to refer to elders and higher-ups by their title. When greeting one older than you, always perform a 45 degree bow unless you are participating in a business interaction where a firm handshake will suffice.

The most drastic difference between American and South Korean cultural values is their individualistic vs. collectivistic societal orientation. The United States has a highly individualistic society, while South Korea is a highly collectivistic society. Collective societies are characterized by a desire to belong, loyalty to one’s group or organization, and place a high priority on the interests of the group or society as a whole. In South Korea, it is important for American managers to manage the group collectively. Do not apply rewards and punishments individually, or else you will risk shaming the individual.

South Korea is a country that demonstrates a high uncertainty avoidance, meaning its culture adheres to tradition, rules and a strict social code. They value job security and therefore work hard, and stress punctuality as well as preparedness. If you are attending a meeting in South Korea it is necessary to schedule it three or four weeks in advance and arrive at the scheduled time.

South Korean’s possess a value system that stresses a long-term orientation, also referred to as Confucian Dynamism. Long-Term Oriented cultures judge situations based on their current circumstances, are incredibly adaptable and practice perseverance. In the economy of a long term oriented society there is a tendency to save and have a company outlook that values long-term profitability over quarterly results.

Cognitive Style  

South Korean has a high context culture. Koreans are indirect and imply their message through non-verbal cues and contextual elements.

Inwha is the commitment to maintaining harmony within society. Because of South Korean’s strict adherence to inwha, they are often hesitant to openly disagree, deliver bad news or say

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no. These responses could risk negative tension between the participants. Instead, South Koreans will almost always reply yes, even if they don’t mean yes. Yes could mean “I understand” or be an acknowledgement of your proposition.

The Korean word Kibun in English is a combination of an individual’s face, honor and state of mind that affects their standing within the community. Indirect communication is a cultural adaptation that maintains harmony and an individual’s kibun. It is very important in South Korean to exercise courtesy in conversations in order to protect others kibun, which might be jeopardized with an insensitive direct style.

High context cultures are harder to become accustomed to as an outsider because communication relies upon situational knowledge.

Korean culture is risk-averse and people are very wary of shaming others.

Time

South Korea observes Korea Standard Time, which is 13 hours ahead of Eastern Standard Time and 14 hours ahead of Central Standard Time. The typical office hours are from 9 a.m. to 6 p.m. Monday through Friday.

Koreans have a polychronic culture and a cyclical time orientation. They prefer to multitask and socialize while they work. They value relationships over tasks.

Standard Greetings

Anyoung (an-nyoung) – Hello Anyoung haseyo (an-nyoung-ha-sae-yo) – Hello (formal) Anyoung hee gyeseyo (an-nyoung-hee gye-sae-yo) -- Goodbye (When departing) Anyoung hee gaseyo (an-nyoung-hee-ga-sae-yo) – Goodbye (When staying) Yeongeo haljul aseyo (young-uh hal-jool a-sae-yo) – Do you speak English?

To initiate a greeting, a traditional bow is customary within Korean culture, but it is not often expected from Westerners. In a business setting one should always bow from the waist instead of the casual head nod used in informal settings. On most occasions, it is appropriate to shake hands where you place your left hand on top of your right arm. The individual with the higher status should initiate the handshake. Never leave your free hand in your pocket, it is perceived as disrespectful. In Korean culture it is uncommon for women to shake hands with their male acquaintances.

Virtary.com. Learn Korean Etiquette & Make That Deal

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Exchanging business cards is a significant part of any business interaction. Exchanging business cards is essential to determining your acquaintance’s status, which will dictate how you interact with him or her. When exchanging a business card, present and receive the card with both hands.

Dress

When conducting business in South Korea, dress conservatively. Ostentatious accessories and flashy colors are frowned upon. It is important to blend in with your counterparts. Suits should be darker colors like navy blue, black and gray. Women should wear long dresses and suits that cover up their skin. Your clothes should reflect your business status.

Appointments

The best times to set up appointments are from 10 a.m. to 12 p.m. and 2 p.m. to 4 p.m. Organize appointments 3 to 4 weeks in advance and to be punctual.

Gestures & Nonverbal Communication

South Korea has a low contact culture. They desire a greater degree of personal space than Americans. Americans are known to smile a lot when expressing kindness, but excessive smiling might

convey shallowness to Koreans. Laughter is often an indication that someone is uncomfortable. Women should cover their mouth when they laugh. Do not point with your finger, but rather point with your whole hand. Tilting back the head is an expression of disapproval as well as squinting of the eyes. Nodding the head is a signal of acknowledgement rather than an expression of approval.

Negotiating

Korean’s wish to make the negotiations a positive experience and prefer a win-win outcome. It is expected that individuals practice emotional constraint when negotiating. You should

speak softly, and remain composed and modest. Be patient, negotiations with Korean businesses are usually more protracted. Korean’s seek to establish a close rapport and mutual trust before proceeding with

negotiations. The first meeting often serves to build strong relationships and is often accompanied by extra rapport building activities, especially heavy drinking and karaoke.

Maintain strong business relationships. Korean business culture values relationships between people, not between businesses.

Impatience will be exploited. Koreans will exploit their American counterpart’s desire to get straight to the point and their desire for quick results.

Koreans prefer to negotiate in large groups and decision-making is collective with each member’s opinion valued, which tends to prolong negotiations.

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Koreans are indirect and imply their meaning. “We will think about it” or “maybe” oftentimes means no.

Leverage personal relationships! Koreans are shrewd bargainers. Bargaining is common in everyday life, such as haggling over

the price of goods at the store.

Visiting

Bring a gift to the host’s home. Typical gifts include sweets, alcohol, fruit, etc. Do not invite yourself into the home. Remove your shoes before entering the home. Your Korean hosts may provide you with

slippers.

Eating

The most senior individual at the table is the first person to eat. Also, no one should leave the

table until he or she has finished eating. The individual with the highest status or the most senior individual sits at the center of the

table. Dishes are most often communal, shared amongst all of the individuals at the table. The meal is paid for by the individual who invited the other(s) out to eat. A patron should not tip. Tipping is often considered rude. You are expected to refill your neighbor’s glass and should never have to refill your own. It is impolite to point your chopsticks. Drink alcohol facing away from elders. Finishing your plate or emptying your glass is a signal to the host that you wish for more food

or drink. Always politely refuse second helpings at least once before accepting.

Gift Giving

Gift giving is a significant part of relationship building in Korean culture. All gifts should be reciprocated.

Exchanging gifts is common practice during initial business meetings. It is always a great idea to give a gift that is representative of your home, such as Kentucky

Bourbon. Other common gifts are products produced by one’s company or an item with the company’s logo.

The value of the gift should correspond to the status of the recipient. Never give a valuable gift to someone who cannot afford to reciprocate with a gift of equal value, or else you risk shaming them.

Gifts should be presented and received with both hands. Do not open a gift within the presence of the person who gave it to you. Do not give a gift in the quantity of 4.

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Faux Pas  

Try not to blow your nose in public.  Refrain from public displays of affection. Do not talk about politics or Japan.

Economic Context

KORUS

The Korea-U.S. (KORUS) Free Trade Agreement was implemented on March 15, 2012 after six years of negotiations. KORUS was the second-largest FTA in U.S. history behind NAFTA. As a result of the agreement, U.S. exports are projected to increase by $10-$12 billion USD. The FTA will increase market access for U.S. firms and will make U.S. exports more cost-competitive by eliminating many tariffs and non-tariff barriers. The agreement will immediately eliminate tariffs on a little less than 80% of all U.S. exports of consumer and industrial products, and in the next ten years will remove tariffs on most of the remaining goods and services. Under KORUS, quotas and tariffs on two-thirds of U.S. agricultural commodities will be removed right away and others will be reduced over the next 23 years.

Free Trade Agreement Tariff Tool - http://export.gov/fta/ftatarifftool/MarketAccessReports.aspx

KORUS FTA Text - http://www.uskoreaconnect.org/about/korus

Total U.S. Trade with South Korea

According to the United States International Trade Commission, U.S. exports to South Korea have increased 6.7% since the implementation of the KORUS FTA in 2012. Total exports is the sum of both domestic exports and re-exports.

Total U.S. Exports to South Korea (In Billions of USD)

  

According to the United States International Trade Commission, U.S. general imports to South Korea have increased 11.3% since the implementation of KORUS in 2012. General imports include all merchandise that either directly enter U.S. consumption channels or are contained in bonded warehouses.

Quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4Quarterly Total 11.4 10.8 10.1 9.9 10.4 10.0 10.0 11.3 11.3 11.3 11.0 10.9Yearly Total

2012 2013 2014

42.2 41.7 44.5

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Total U.S. General Imports from South Korea (In Billions of USD)

From 2012 to 2014, the United States’ trade deficit with South Korea has increased substantially.

U.S Trade Balance with South Korea (In Billions of USD)

2014 Major Exports and Imports

Top U.S. Exports to South Korea 1. Chemicals – 15.6% 2. Computer & Electronic Products – 15% 3. Machinery – 14.1% 4. Transportation Equipment – 11.6% 5. Food Manufactures – 7.8%

Top U.S. Imports from South Korea 1. Transportation Equipment – 31.5% 2. Computer & Electronic Products – 23.4% 3. Machinery – 8.6% 4. Primary Metal Manufacturing – 7.8% 5. Petroleum & Coal Products – 5.4%

Market Analysis

Macroeconomic Indicators

South Korea is a developed country with a relatively high quality of life. Its declining GDP growth rate of 2.2% year-on-year reflects short-term economic stagnation. The export-oriented economy has been curtailed by China’s economic downturn. China is South Korea’s largest trading partner and the destination of 25% of the country’s total exports.

South Korea uses the ₩ Korean won ( KRW) as its currency. In 2015, the KRW has depreciated 6% against the USD to 1160 KRW per USD. A stronger USD will increase the price of U.S. goods and services, and thus decrease U.S. exports to South Korea. When the U.S. Federal Reserve raises interest rates within the next year, the USD will continue to appreciate against foreign currencies as an escalation in capital inflows strengthen the USD.

Consumer Spending

Quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4Quarterly Total 13.7 15.8 14.9 14.5 15.0 16.4 15.8 15.2 15.5 18.2 17.6 18.4Yearly Total

2012 2013 2014

58.9 62.4 69.7

2012 2013 2014-16.6 -20.7 -25.0

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In 2014, the country had total retail sales of $284 billion USD; the fifth highest in Asia only trailing China, Japan, India and Indonesia. Koreans have a disposable income per capita of $19,510 USD and a household financial wealth per capita of $29,091 USD. Recently, consumer spending and economic growth have been threatened by growing household and student debt. The ratio of household debt to disposable income was 164% in 2014. The country is also contending with the highest rate of senior poverty in the developed world. The shrinking middle-income cohort of Korean households as well as the small percentage of women in the labor force further strain consumer spending. South Korea’s middle class has decreased from 75% of the population to 67% since the 1990s. However, Pricewaterhouse Coopers (PwC) forecasts that private consumption will begin to accelerate as a result of government policies designed to tackle these issues and to stimulate wage growth. PwC expects that total retail sales will reach $378 billion USD by 2018.

Consumer Behavior

South Koreans are regarded as innovative, well-educated and technology-savvy consumers. They have the second highest internet speeds in the world and online shopping is becoming increasingly prevalent. According to a study conducted by FedEx, 39% of Korean consumers spent over 50% of their monthly household consumption expenditure on online purchases. 86% of Korean respondents replied that they made direct online purchases of goods from the United States. South Korea has a $200 USD duty-free ceiling on online purchases. American e-retail sales, such as Black Friday and Cyber Monday, are very popular amongst Koreans.

South Korea is considered a leading cultural trendsetter for much of East Asia. Korean Pop or K-pop, Korean television dramas and Korean movies have become popular amongst East Asian Millennials; a development referred to as the Korean Wave. Korean consumers are highly brand conscious because their culture values status and conformity. Increased openness to globalization has resulted in greater popularity of Western brands and less regard for nationalism in purchasing preferences.

Market Opportunities

South Korea provides a tremendous opportunity for strategic growth through trade. An astounding 90% of South Korea’s GDP is accounted for by trade. The country relies on imports to fulfill around 70% of its foodstuff demand and 97% of its energy demand. South Korean consumers have historically faced high prices for consumer goods. Parallel imports and online purchases are more cost competitive to Korean consumers.

Market Challenges

The current strength of the USD in comparison with other currencies is a short term disadvantage to U.S. exports, which become more expensive when the USD appreciates. This disadvantage is further exacerbated by the intensified competition within the South Korean market as a result of multiple preceding FTAs signed with other polities, including the EU-South Korea Free Trade Agreement and ASEAN-Korea Free Trade Area. International companies from these polities had a first mover advantage over their U.S. competitors. South Korean FTAs with Canada, Australia and Turkey have also recently entered into force after the implementation of KORUS.

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U.S. companies will encounter stiff competition from South Korea’s chaebol; massive, dynamic conglomerates that dominate South Korea’s economy, are often accused of crony capitalism and are considered too big to fail. The big four chaebol are Samsung, LG, Hyundai and SK Group. In 2013, the big four accounted for 90% of South Korean conglomerate’s profits. Samsung by itself is responsible for 20% of South Korea’s GDP. Chaebol and their few suppliers are barriers to successfully entering the South Korean market.

The country’s economy is largely driven by export-oriented growth. The service sector only accounts for 58% of GDP. This is a relatively small percentage of GDP compared to the service sectors of other advanced economies. South Korea needs to stimulate consumption, which will also increase demand for U.S. imports. The government plans to implement its “three tax schemes” in order to raise household income and increase domestic consumption. One such policy would grant a 10% tax break to firms that raise their employee’s wages over a three year period. Also, the government plans to alleviate senior poverty by raising the non-taxable ceiling on the income of senior citizens.

Major Centers of Commerce

Seoul

Seoul is South Korea’s largest city by population as well as its capital. The city has a population of 10.3 million people. Its residents have a disposable income of $28,500 USD, which is considerably higher than the national average of $19,510 USD. According to the Economist Intelligence Unit, Seoul is the tenth most expensive city in the world, and the third most expensive city in East Asia after Singapore and Hong Kong. Seoul’s food prices were the highest in the world.

Seoul is South Korea’s primate city. It generates 22.5% of the country’s GDP. The headquarters to all of the big four chaebol conglomerates are located in Seoul.

Busan

Busan is a southeastern coastal city along the Sea of Japan. It is South Korea’s second most populous city with a population of 3.6 million.

Busan is South Korea’s largest port city, and the Port of Busan is the world’s 5th largest container port. The city will call home to one of South Korea’s six future Free Economic Zones (FEZ), which is expected to be complete by 2020. The Busan FEZ will be the Korean hub for trade with Northeast Asia, including China and Japan. Once realized, the Busan FEZ will feature a new port that will expand upon the capacity of the Port of Busan, and create modern community with industrial parks, residential areas, international business districts, foreign schools, etc.

Busan is one of South Korea’s industrial centers. It is responsible for 15.2% of the country’s manufacturing production. Its major industries include shipbuilding, automobile manufacturing and chemical production. Busan serves as the headquarters to two of the world’s five largest shipbuilding companies, Hyundai Heavy Industries and Hyundai Mipo Dockyard Co. It is also the fifth largest automobile manufacturing city in the world. Hyundai, Daewoo Bus and Mobis have manufacturing plants located within the city. Major corporations headquartered there include Renault Samsung Motors, the Korean Exchange and Hanjin Heavy Industries.

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Incheon

Incheon is a northwestern coastal city along the Yellow Sea. It is a major city within the Seoul Metropolitan Area, which has a market of 25.6 million people. The city itself has a population of 2.6 million. The Port of Incheon is South Korea’s second largest port.

The Songdo International Business District is an emerging greenfield smart city and FEZ within Incheon. It promises to be the world’s largest private sector development costing over $40 billion USD. A focal point of the Songdo IBD is the Incheon International Airport; the fifth busiest airport in the world in terms of cargo traffic.

U.S. Embassy in South Korea 188 Sejong-daero, Jongno-gu Seoul, South Korea P: 011-82-2 397-4114 http://seoul.usembassy.gov

Upcoming Trade Shows/Events for 2016

1.) Seoul International Aerospace & Defense Exhibition 2015 10/20/2015 - 10/25/2015 Seoul, South Korea Industry: Aerospace www.export.gov/eac/show_detail_trade_events.asp?EventID=36030&InputType=EVENT

2.) CPhI Korea 2016 08/23/2016 – 08/25/2016 Seoul, South Korea Industry: Pharmaceutical http://www.cphi.com/en/korea/home

3.) KPCA Show 2016 04/26/2016 – 04/28/2016 Koyang, South Korea Industry: Electric Circuits http://www.kpcashow.com/jpn/2016/main.asp

4.) World Luxury Expo Seoul 2016 09/02/2016 – 09/04/2016 Seoul, South Korea Industry: Luxury Goods http://world-luxury-expo.com/world-luxury-expo-seoul/

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5.) ENVEX 2016 05/31/2016 – 06/03/2016 Seoul, South Korea Industry: Environmental Technologies https://www.envex.or.kr:460/eng/main/index.asp

Kentucky Context  

South Korean-owned Companies with Facilities in Kentucky

1.) Clark Material Handling Company 700 Enterprise Dr. Lexington, KY 40510 P: 859-422-6400  www.clarkmhc.com Manufacturer of forklifts based in Lexington, KY.

2.) INFAC North America INC 1 INFAC Drive Campbellsville, KY 42718 P: 270-789-1040 www.infac.com Automotive supplier with a brake and transmission control cables manufacturing plant in Campbellsville, KY.

3.) Kiswel Inc 7950 Dixie Highway Florence, KY 41042 P: 859-371-0070 kiswelusa.com Welding supplier with a manufacturing facility in Florence, KY.

Total Kentucky Trade with South Korea

South Korea was the 15th most popular destination for Kentucky exports in 2014.

Kentucky Exports to South Korea (In Millions of USD)

Kentucky Imports from South Korea (In Millions of USD)

2011 2012 2013 2014509.0 618.0 439.0 374.0

2011 2012 2013 2014692.0 511.0 843.0 730.0

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South Korea Consulate for Kentucky Chicago South Korea Consulate 455 North City Front Plaza Dr. NBC Tower Suite 2700 Chicago, IL 60611 P: (312) 822-9485 F: (312) 822-9849 http://south-korea.embassy-online.net/South-Korea-Consulate-General-Chicago.php

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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http://www.reuters.com/article/2015/07/21/southkorea-economy-debt- IdUSL3N1012CO20150721

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http://www.theglobeandmail.com/report-on-business/international-business/asian-pacific- business/south-koreas-chaebol-problem/article24116084/

Negotiating International Business - South Korea

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https://g20.org/wpcontent/uploads/2014/12/g20_comprehensive_growth_strategy_south _korea.pdf

World Economic Forum. Global Competitiveness Index 2015-2016.

http://reports.weforum.org/global-competitiveness-report-2015-2016/report-highlights/ ANZ Business. South Korea.

http://www.anzbusiness.com/content/anz-superregional/countries/south-korea.html The Economist Intelligence Unit. Worldwide Cost of Living 2015.

http://www.eiu.com/Handlers/WhitepaperHandler.ashx?fi=WCOL-March+2015- Summary.pdf&mode=wp&campaignid=WCOL2015

Invest Korea.

http://www.investkorea.org/ World Trade Organization. Trade Profiles 2013.

https://www.wto.org/english/res_e/booksp_e/trade_profiles13_e.pdf

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Nikkei Asian Review. Top four chaebol generate 90% of South Korean conglomerate profits. http://asia.nikkei.com/magazine/20140410-Growth-Central/Business/Top-four-chaebol- generate-90-of-South-Korean-conglomerate-profits

Kentucky Cabinet for Economic Development. Kentucky Facilities with Korean Ownership.

http://www.thinkkentucky.com/kyedc/kpdf/Korean_Investment.pdf Pricewaterhouse Coopers. 2015-16 Outlook for the Retail and Consumer Products Sector in Asia.

http://www.pwchk.com/webmedia/doc/635593364676310538_rc_outlook_201516.pdf Doing Business In Korea: 2015 Country Commercial Guide for U.S. Companies

http://www.buyusainfo.net/docs/x_9278983.pdf